Structure Prices Stable; Global Crude Steel Production Dropped by 4.7%

Key Takeaways

• RINL facility has resumed operations, slowly addressing acute material shortages.
• Increasing prices from major manufacturers reflect external pressures and material shortages.
• The RINL facility's operational return may stabilize supply in the structural steel segment, while secondary market prices are influenced by weak demand.
• World crude steel output fell by 4.7% in September to 143.6 million tons.

Structure Prices

• Secondary Market: Secondary market stable in all regions.

• Primary market monthly price revision: SAIL increased prices by Rs 2000/ton, VSP increased by Rs 1000-1500/ton and JSPL increased UB/UC sections by Rs 1000-1500/ton and lower sections by Rs 2500/ton.

• Ex-Raipur: Rs 47,100/ton

• Ex-Hyderabad: Rs. 49,000/ton

• Ex-Raigarh: Rs 47,100/ton

• Ex-Chennai: Rs. 49,900/ton

• Ex-Mandi Gobindgarh: Rs. 48,600/ton

• Ex-Durgapur: Rs. 46,100/ton

• The offers for 100 x 50 Channel in the Primary Structural Steel market are as follows:

• Ex-Durgapur: Rs. 54,500/ton

• Ex-Chennai: Rs. 58,000/ton

• Ex-Hyderabad: Rs. 56,500/ton

• Ex-Ahmedabad: Rs. 57,000/ton

• Ex-Ghaziabad: Rs. 54,500/ton

Structure Supply and Demand Pattern

• Primary: The scheduled shutdown of the facility and the subsequent suspension of operations are the main causes of India's acute RINL material shortage. To help with the supply shortfall, the RINL facility is already back in operation, albeit slowly, and some sections have already hit the market. Additionally, it is the only producer of round bars that aren't readily available right now. Even when they are absolutely required, big structural sections are uncommon in many locations. The current shortage of materials is having a major effect on the supply. Due to SAIL's inability to provide the massive demand for structural steel, the RINL facility's restart will help. Consequently, supply is a major issue in the primary segment.
• Secondary: Secondary mills are not worried about shortages of finished materials because they have enough inventory for typical sizes. However, because of the challenges in finding billet, small mills are facing a shortage of raw materials and a lack of overstocks. Prices are falling as a result of the trade industry's current weak demand.

Structure Global News

• Global crude steel production in September this year decreased by 4.7% year on year to 143.6 million tons, according to the World Steel Association (worldsteel). In the January-September period this year, global crude steel production went down by 1.9% year on year to 1.39 billion tons.

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Expert Opinion

• Due to external circumstances, all the major manufacturers have increased their prices this month. SAIL prices have increased as a result of a shortage of plant supplies.
• RINL Round bars are hard to find and highly sought for. Due to the inaccessibility of some important structural elements, the JSPL segment's price has also gone up this month. In order to help meet the structural need, the RINL facility has restarted.
• Slow secondary market trade lowers secondary market pricing by decreasing demand.